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tv   [untitled]    July 25, 2011 7:00am-7:30am EDT

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oh she's available in the movie the joint the hotel rooms a movie that's the case we go to the grand imperial truly the taj was the tallest coromandel you can a let me tell those little civility to go and. read this and the colonel was hotel as risk a retreat. show all the indignation spaniards are united in anger over the government's failure to deal with debt and mass unemployment as thousands rally on the streets of madrid. and as the us is struggles to strike a political deal over its own debt crisis and to reclaim senator attempts to reassure the creditor nations of asia that america will not default. the first court appearance of the mastermind behind the worst peace time massacre in norway's history is a closed to the public eye on the judge's order. and gold is setting new record highs pretty much every day as investors move out of stocks amid uncertainty over
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how soon the united states will be able to resolve its debt and deficit problems more on that in twenty minutes time of the. just after three pm on a monday here in moscow this is r.t. with me will recent show thousands of protesters are packing out central madrid they're angry at the economic woes and dull things spain demonstrators from all across the country have been marching for weeks to demand quick action to deal with the country's debt and mass unemployment. is in madrid to hear what the protesters now known as the indignance have to say. the cash in spain is going mainly down the drain at least that's the opinion of thousands of people who've rallied
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across the country. we're going to pose in the footsteps of the latin american countries that occurred by mexico the government is controlled by the european bank and i am w.t.f. they don't care about the people. so the people decided it's time to voice their concerns loud and clear before they lose more than just the shirt off their back spain has one of the highest unemployment rates in the eurozone so while the european leaders have been occasionally meeting and comfortable quarters to talk about the future of the euro and the european union itself people in the country have been demonstrating on an almost weekly basis in many government shape up stop talking and do something about the situation this is not just about higher wages and better pension plans with more than forty percent of young people in spain unemployed simply getting a job is a priority for those gathered in the trades central square the big part of the responsibilities from the government. because the government first of all. not
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create the conditions at the beginning of the crisis to fight against the crisis it reacts very late. and on the other hand once the government. what to do the government it's not doing their job properly look it's no good in the no doubt for people to wake up otherwise we'll just become slaves to the system and want to be treated as humans and they believe they can make a difference. the government has to change things because they don't have a choice. with greece in shambles and neighboring portugal trashed by the rating agencies spain is facing not just a financial but a deepening. social crisis members of the so-called indignant marches say they want their dignity preserved but whether their calls will be heard is
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a whole nother issue even. madrid. meantime agrees to its credit rating cut yet again its meaning is now hovering just above the level that would constitute a default the terms by the government that you solve the financial crisis so if thousands take to the streets some turning to violence and a financial analyst about sky's agrees with the protesters in the field of the latest one hundred nine billion euro bailout will only plunge the eurozone deeper into trouble it increases the amount of debt it increases the amount of debt in the eurozone it is crease of the amount of debt and grace so this is a plan cooked up by bankers to repackage recent characterize and resell debt that's what they do and it crowds out the real economy so if they think that this is going to help the economy grow their way to a position of paying off this debt or paying interest on the debt that's not going to happen because by giving bankers more dead to control the productive part of the
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economy you are eliminating that part of the economy's ability to pay off this debt so the banking cancer is just becoming worse in the eurozone and worse in greece drawing out the banks they're not bailing out the workers or the people who are on the ground so to speak everything out european banks they're bailing out wall street banks they're bailing out other banks in so doing they're increasing the debt load so it's making the situation much worse and they're crowding out any ability for the workers in greece to generate enough income to pay off this debt this is consigning their population to debt service. let's get some expert analysis on the situation in europe from a financial journalist and author of van overtveldt joins me now live from brussels . thank you for joining us today so the downgrading of greece's credit rating it started back in two thousand and nine and it's still going on where does it end for this country well it depends where practically you arrived at on july twenty first
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in the fall because if you read carefully what has been decided on july twenty first being the latest european summit greece is now effectively in the fold because if you calculate on the net present value the private bond will given you. a value reduction of value reduction of around twenty percent so. if you're saying effectively that greece is already in effect in default so it's not like this what is the point of the second one hundred nine billion euro bailout if it never reaches the man on the street what's the point. well indeed that it is certainly not the point and that's the point because this package will certainly not help the greek economy the greek economy needs growth and since you're in the midst of a very bad recession you're blige a country to cut spending to increase taxes then throwing some money at it is not
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the solution let me illustrate it if you do the math correctly on what has been the sign the through place the. gain in terms of the annual budget for this year and next year in the a rough there is less than one percent of g.d.p. so if greece started out let's say with a deficit of them percent before the decisions of last week it will have a deficit now of around nine percent it's nice to have but it doesn't solve the situation in any way but there are some at that say they are incredulous. that we used to bail out why do we use the word bailout i mean is this simply banks paying banks fat cats helping facts well indeed that a correct analysis of the situation we're bailing out the banks that we wouldn't be soft i presume with greece if there wasn't the problem of the french and the german
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banks not only of these two countries but of course they are the major players in this if they were in that vulnerable to the greek situation indeed we are throwing money at the banks through greece now or spain looks to be next in line for a costly rescue package while the e.u. struggles as we know to keep the euro afloat bailout or to go after greece how much longer can europe people fording to pay up to pay out. well the the limit of all this is of course the preparedness of the major player in all these germany to come up the money and from what we read in the german press from what we hear from an increasing number of german politicians it is quite obvious that the limit of germany's prepared to do. for the euro is coming to an end and my guess is that the end of the day and it's hard to say when that will happen it will be germany that. turns out the light on the euro well as you were
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mentioning germany there is a good point you raise germany has been shouldering a lot of the brunt of bailouts for the eurozone it's just been shuttling cash out there and also now germany is shuffling cash to the libyan rebels and it's germany stretching itself. without beyond any doubt and of course the germany is certainly the country inside the european union with the deepest pockets but as we see for example now also in america or in the united states even the deep pockets of countries with very deep pockets have their limits and certainly germany will be approaching those limits those limits quite rapidly go on like things have been going on for say the past two years now spain and italy go about things trouble much bigger economies than those of let's say portugal and greece now if they go down could they drag the rest of the eurozone down with well let me illustrate that by referring to the s s s the famous stabilization fund if you do the numbers correctly what is in this fund at the moment then we greece ireland and
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portugal we are already at the limits of what this fund can do at the moment if spain for this you need at least three four increase i repeat three four increase of the amounts that could be raised by disunity and instability asian films and i'm not even mentioning italy so this gives you an idea of what is involved here and indeed the fall of spain and would beyond any doubt for me also mean the fall of the euro that you have written a book called the end of the euro do you really believe that a common currency has failed in europe and if so where did it all go wrong well basically it all went wrong from the start because there's a substantial amount of good economic theory and practical experience the united states is a well functioning monetary union that shows you the conditions that need to be fulfilled and we have a well performing monetary union you need to have
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a political union and you need to have flexible markets certainly flexible labor markets in europe we don't have a political union and we don't we certainly don't have flexible labor markets so from the beginning. there were huge weaknesses in the whole of the monetary union in europe and my big surprise is there because last the ten years before through this kind of crises these weaknesses came to the surface and pan over felt editor in chief of trends a business magazine live in belgium many thanks indeed. well i mean i'm in the us the republicans and the democrats failed to strike a deal to resolve the nation's debt ceiling crisis over the weekend but secretary of state hillary clinton who is in hong kong during a tour of asia says she has no doubt an agreement will be reached before next week's deadline economic analyst martin says that the u.s. is so deep in debt that america's global influence is being undermined. so united
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states is essentially bankrupt in any case if they increase their debt ceiling actually as the chinese rating agency they're going has been saying even if they find an agreement and they increase the debt ceiling is going to be as a result more then so the u.s. has thirteen point five trillion of bed and that's the nomination of their budget it's not even the fiscal gap including all the unfunded liability is really a looking at two hundred trillion us dollar of it's absolutely beyond control and alternately it appears that the united states will be facing a sovereign debt crisis and we suggest that investors should stay out of the region and look for a look for balls to work on what it is true to help protect against what's going to there's a lot of talk always in the rest of our the dangers of china military growing and how much of a risk this poses to asia and the rest of the world but if you're looking at how much the united states is spending on military versus trying it's totally
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disproportionately u.s. is spending a lot more the only difference is the u.s. is doing there is borrowed money and they can't afford it so they have to end soon but if you're just looking at the plain facts who has been attacking more third countries clearly it's europe and the united states who are meddling in a lot of other countries is far more serious consequences so far. you with r.t. and on the way for you shortly fighting the onslaught of a deadly drug but the crackdown on the substance known as crocodile could also affect innocent painkiller users here in russia. the man of facing twenty one years in jail for carrying out friday's twin attack on norway is due to make his first appearance in court to explain his actions the session will be closed to the public and to the media thirty two year old under the bearing i believe it has admitted responsibility for a bomb attack in the capital and a massacre at a youth camp however he denied any criminal killed ninety three people reportedly lost their lives but police say that number could be revised downwards the bomb and
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also targeted buildings connected in no way to governing at labor party and the youth camp on the toy island was also run by an investigative journalist tony gosling tells us that the case highlights and new brand of terrorism. anders breivik thought he was some kind of teutonic knight from medieval times because he's echoing the kind of crusader attitude and it's a very strange version of christianity that he is because he says he's a christian i don't think he is maybe the same kind of strange version of christianity that bush and blair have been coming up with over the last ten years or so so i think that this is actually the tip of an iceberg is actually quite a lot of this neo nazi activity out there and now i think the antiterrorist or thought he's right across the world are going to have to take this brand of terrorism much more seriously and particularly worrying is that he was a freemason and as gravy as declared he was
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a freemason i would imagine that the norwegian police are now going to be talking to other all the other members of any masonic lodges that he was in because this seems to be the place where this kind of fake christian rather nasty racist ideology was cooked up i would also add that it was interesting the police said they never come across him before the norwegian police but i wonder very much i wonder if the secret service in norway has been watching him because it was very strange that when he was first arrested on friday the police actually called out his name to him now it was very i would be amazed if they would have actually known as they first approached him what his name was i would have thought that from the arrest point that's where the investigation would have started from. this afternoon in norway on the memory of those killed with a minute's silence the solemn ceremony was attended by the prime minister and members of the royal family here in moscow meantime hundreds of laid wreaths and lit candles of the norwegian embassy condolences and messages of support also being
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sent to oslo from all around the world. well for more in depth report on the video footage of friday's double atrocity just head to our website when you're there you can actually take the time to tell us why you think the attacks like this take place let's look at the stats now are the majority believe that no society is protected from the acts of mentally ill people thirty eight percent think the killings are a result of failed cultural integration policies twelve percent blame the right to bear arms and the rest of you say that it's down to the performance of the police show your opinion r.t. dot com. germany has decided to weigh in on nato's campaign in libya despite abstaining from a u.n. vote on military intervention back in march early and says it's loaning a hundred million euros to the rebels for quote civilian and military and purposes the germans initially opposed action in libya but chancellor angela merkel has since expressed hope that the nato mission succeeds collins also recognized the
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transitional national council as the legitimate government of libya alone comes out billions of dollars of colonel gadhafi his assets remain frozen in offshore banks right despite the coalition's pledge to give the money to rebels german government consultant christophe horst of things berlin has a vested interest in cashing in on the war. it is really a big question what this money is being used for first of all who controls that then next has nato ever cared for the civilian population in libya i don't think so a group of countries bombing libya in using you really a weapons then of course is a group of countries not caring for the civilian population abstaining being neutral in this case of course was not enough because nato has used the security resolution is a you know free hand to do just anything they want and in fact they are fighting on the side of the rebels they're fighting the libyan government and nobody knows where nato will decide to you know protect some civil populations and then kill the
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bigger government more than twenty billion dollars in threes this money is going to be used to help the rebels but of course that is in a way totally illegal you can't just take money away from from governments and give it to rebels germany wants a piece of cake to be to be clear germany wants to maintain its fifteen percent of the libyan oil is a percentage of the total oil imports of germany right now eighteen minutes past the hour here in moscow the bodies of all the victims who died when a pleasure cruiser sank you know russia's starter stand republic two weeks ago has now been recovered the bull garia went down in minutes on the volga river with one hundred and twenty two people perishing in the disaster seventy nine of work rescued the ship has now been lifted from the riverbed and so to shallow waters with a harness to be drained to help investigators establish the cause of the tragedy the captains of two ships that sailed by the bulgaria face criminal charges for
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failing to offer help to people who have already been charged with violating safety regulations. so now let's get to some other headlines from around the world for you this hour syria has approved a law allowing the formation of political parties other than the ruling baath party opposition. so been bad in the country since one thousand nine hundred sixty three military coup but a four month national uprising calling for the president to step down put pressure on the government to reform the political system however the army continues its operation to crush dissent against the regime detaining schools of people in the capital and in its suburbs. mexican authorities have arrested more than one thousand people in a crackdown on human trafficking and sexual exploitation the arrests were made throughout the weekend in a mexican northern city of ciudad juarez police say they also rescued a few dozen under-age girls the city is known as the deadliest in the country with
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over three thousand murders committed there last year alone. pirates have hijacked an italian diesel tiger with twenty three crewmembers on board in western africa the attack was carried out on sunday in the gulf of guinea off between who's maybe years currently pursuing the us or most of the crew are from romania and the philippines with two italians incidents of this kind are more common off the east coast of africa usually carried out by somali pirates. the last a suspect on the international war crimes tribunals list of one hundred sixty one fugitives is to face the un court on monday goran hadzic was arrested last week in serbia after seven years of run he's accused of atrocities during the conflict between croatia and yugoslavia in the early nineties draining it from murder to religious persecution. cheapness and availability of turned a highly toxic coating based drug known as to crocodile into russia's second heroin
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in an attempt to stamp out the use of the deadly substance from next year painkillers will only be available right prescription but as r.t.e. go to their reports the new law could lead not addicts to stop instead i must warn you may find some of the following images disturbing. you don't even know they call it a crocodile because it's uses skin penske only before it falls off virtually unknown ten years ago it's a mixture of petrol solvents phosphorus and most importantly cheap medicines continue to painkiller it's now become rich a second most popular drug after heroin pushed to cheaper and more easily available alternatives injecting this lethal cocktail rock he uses flesh in months most die within three years i've only been using it for two months i wish i never started teaching it because i haven't come up with a simple solution for now i can still buy code being in pain and drugs off the
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shelf but from next year onward i'll need a prescription to do that so there are six showed up nearly cost of russians use these drugs on a regular basis but whilst majority of them feel completely legitimate reasons so in their fight against drugs is the government going too far as i'm throwing the baby out at about quarter. coding is sold over the counter in most western countries but its sales have doubled in russia in five years and many say this is not a coincidence i think it was a mistake to start selling coding without a prescription in the first place where making it the most easily available opiate it's warm this problem yet expert opinion has been divided some believe that this doesn't do enough to tackle the social cause of addiction and punishes innocent consumers. there is no efficient system in the country for issuing prescriptions so the people who will suffer are the ordinary pensioners and housewives who need those medicines. the drugs then and the moscow suburbs re came here to ask what the
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users themselves think about big new law. i don't believe it would change anything those who want to take drugs will take drugs we will buy them from the right pharmacies and if we don't get them to use something else we will always have something to inject. either of the. see in the script. for more news updates in exclusive video should go to our website r c dot com or here's a few of the items we have lined up for you online today i'll teach you right in the cockpit of a plane to see how pranksters armed with lasers risking blinding the pilot and causing disasters or possibly disasters during landings. also online today on this day twenty five years ago soviet astronauts settle on a sub at sky became the first woman to walk in space by spending more than three and a half hours outside the ship. all
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right i'll be back with a look at the day's headlines in just a few minutes and first let's check the business with the tree. thanks for alone welcome to the business update on r.t. as a second largest utility atus on has renegotiated the pricing of its long term gas contracts with russia the italian company says it might be able to save up to two hundred eighty million dollars now in the street believe the agreement could have a wider impact on other european operators many of them renegotiate long term gas contracts with supplies from russia an object. russia is resuming vegetable important and hungry in the past few russians consumer watchdog has lifted
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restrictions on eight other e.u. nations including france belgium and that the ban on the verge was imposed early in june after a deadly outbreak of e. coli in germany. u.s. lawmakers are racing against the clock to forge a deficit reduction deal the agreement would clear the way for congress to raise the fourteen point three trillion dollars debt ceiling if the politicians talk such store the u.s. may suffer damaging default but this could spur demand for u.s. bonds as the chief economist of burbank explains by the way hybrid realty went as a result of the default in their states in prison a demand for you it's treasuries because you is treasuries. in the limes is marketed. a low risk that so if you increase closers as it's great you basically increase the risk in the overall system he
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was the means to tuitions which are requiring by law to increase their number or for low risk for us it's in the dark color. second of the markets now is declining for the first time in five days that some concern a failure to reach a deal and raising the u.s. debt ceiling may cause the biggest consumer of crude for the fault light sweet is down almost a dollar brant down one dollar thirty one said it's. gold prices on the contrary have surged to record hires as investors are seeking safe haven as its summit dead jitters on global changes gold is trading at six hundred seventeen dollars for troy ounce the silver is just below fourteenth on the. european markets the trading flat this is of course on the failure to reach a deal in the united states on lifting the debt ceiling and a further downgrade of greece's rating that this is all preventing the markets from
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extending their winning streak and see under the act of down just marginally. moved to the russian markets now and negative picture all day long pretty much at the opening my eyes are candiotti a sort of drop of more than one percent they've come back from those slightly paring those losses. on the main move as well stocks are down another stop for gas for their solution one of the half a cent telecom however this is better than the market's up one point six percent this opens but trading on its own about seven weeks ago nor an oracle trends and most depends on the rumors surrounding it just how much of a company's privatized polymaths all is up two point seven percent because the gold miners joined yet another record high price for gold. as the new trading week kicks off mark rubenstein for metropol i see gave us some names for investors to park their cash. having seen strong commodity prices i don't expect
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that to change in the near future. i think gas problem now. is a very interesting name a minute fall and a correction in the past two weeks and with their oil prices back to where they had been i think gas promising even a room to run without a name when we're alike short term and bt b i think this is a variance opportunity right now and it has had a run up full in their government funds really or given to the bank of moscow and but i think it's going to continue and still trades at about twenty five percent below zero bank robberies next with the headlines on my colleague the milly come she'll be had fifty minutes trying to bring up that.
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question is that so much of an a.b.c. news musician find it more or less five months on the condition of the egyptian revolution as it lived up to expectations which is. wealthy british style not.


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